DUBAI: DP World has acquired 100 per cent ownership of Danish shortsea and container feeder shipping firm Unifeeder.
The acquisition of the firm, funded from existing balance sheet resources, is subject to regulatory approvals. DP World said it expects to close the acquisition in the fourth quarter of 2018, and expected the firm, which had revenues of 510 million euros last year, to be earnings accretive in the first full year after closure.
“We are delighted to add the Unifeeder brand under the DP World umbrella, which supports our strategy to grow in complementary sectors, strengthen our product offering and play a wider role in the global supply chain as a trade enabler,” said Sultan Ahmad Bin Sulayem, Group Chairman and CEO of DP World.
“The ever-growing deployment of ultra-large container vessels has made high-quality connectivity from hub terminals crucial for our customers and Unifeeder is a best-in-class logistics provider in this space with a strong reputation in Europe. Our aim is to leverage on the in-house expertise of Unifeeder and to accelerate growth in this scalable platform to deliver value for all stakeholders. Unifeeder operates on the same common-user principle as DP World and adds to the Group’s strong value proposition to international shipping lines and end cargo owners in making the global supply chain more efficient and cost effective.”
Jesper Kristensen, CEO, Unifeeder A/S, added, “Not only is there commonality with our business models but we also share the vision of serving our customers through removing inefficiencies and delivering sustainable shareholder value. We have enjoyed great success over the last five years under Nordic Capital’s ownership, and we believe that the Unifeeder brand within the DP World Group has the opportunity to accelerate growth, expand further and take the business to the next level.”
Shortsea shipping and container feeders
Shortsea shipping: Also known as marine highway shipping, is predominantly coastal trade, as opposed to intercontinental, deep-sea or ocean shipping.
Container feeders: Medium-sized freight ships, usually carrying between 300 and 1,000 twenty-foot equivalent units (TEU).